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Unifi criticises offshore trend

Product providers are not justified in using the excuse of tighter margins to think about moving non-core operations offshore, says financial services union Unifi.

While accepting that life and pension providers are seeing margins squeezed because of the 1 per cent world introduced by stakeholder, the union, which represents 150,000 financial services workers, has rejected this as a valid reason for looking to move administration and call centres offshore.

Speaking to Money Marketing at the TUC annual conference in Blackpool, Unifi director of communications Dai Davies said if it was not for stakeholder, providers would find another excuse to justify looking to places such as India and China to run the admin parts of their businesses.

He said the large number of recent redundancies demonstrates short termism by the industry because providers will lack adequate staff when the economy picks up again.

Davies said: “There is a huge potential impact from outsourcing work to places like India and China. It is a sensitive issue and I think they will certainly look at moving offshore.

“It is an easy excuse to make but I do not think it is justified to use the pressure on costs from stakeholder as an excuse.”

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